Ability to Show Borrowing Capacity
Once you've become an member, there are some additional steps required to establish borrowing capacity and establish the ability to execute a credit transaction:
1. Complete Borrowing Agreements
2. Pledge Collateral
To protect all members' interests, FHLBI requires that all borrowings and outstanding lines and letters of credit be fully collateralized. The bank accepts a wide menu of securities, loans, and cash assets as collateral for securing advances and other credit products. Borrowing by members is limited by the amount and value of the member’s total eligible collateral pledged to the FHLBI. Further information regarding collateral eligibility, market valuation, pledge requirements, and over-collateralization requirements can be obtained by contacting an FHLBI Marketing Department Account Manager
3. Hold Stock to Support Activity
When joining FHLBI, an institution becomes a member after completing the application process and purchasing the required amount of FHLBI stock. However, when activity is done by a member, such as executing a credit transaction, an additional stock purchase may be needed. The FHLBI Capital Plan provides an overview of the activity stock requirement.
To learn more about becoming an FHLBI member and the process for obtaining credit, access the Department Directory to view contact information for an FHLBI Account Manager.